AgencyIntermediateCalifornia Exam

A listing agreement that automatically renews unless cancelled is called a(n):

AExclusive authorization agreement
BEvergreen clause listingCorrect
COpen listing
DNet listing

Why Evergreen clause listing Is Correct

Answer B: Evergreen clause listing

An 'evergreen' or automatic renewal clause causes a listing to automatically renew at expiration unless either party provides notice of cancellation. In California, the DRE discourages automatic renewal provisions that extend beyond the original term.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

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